KUALA LUMPUR (March 2): The luxury tax is expected to be rolled out by the second half of this year (2H2023), said Deputy Finance Minister Steven Sim.
“We are aiming to roll out [the legislation] by the second half of the year. At this moment, the ministry is in consultation with the relevant stakeholders,” said Sim at the launching ceremony of Amanahraya Syariah Income Fund.
“I have received concerns from the tourism and retail industry, but I want to reassure that as the government is doing study on the tax structure as a whole. We definitely will consult our stakeholders from the tourism industry.
"We will ensure that taxes at the introductory level would not make us less competitive," he added.
When asked on the capital gains tax on non-listed share disposals, Sim clarified that it is going to be at a low tax rate for a start.
“We want to expand the tax base of the country, and try to introduce a more equitable taxation system.
“The ministry is still studying the mechanism, but I can reassure you there is going to be a low tax [rate] and threshold,” said Sim, while adding that the tax will focus on non-listed share disposals.
“The ministry will definitely look into all the impact of this new taxation in the market as well as consult the stakeholders before we roll out the new tax.”
Sim was speaking during the launch of AmanahRaya Syariah Income Fund here on Thursday (March 2).